Sergei is a hardworking farmer from Ukraine. Two years ago, he was cultivating a ½ hectare of land. A year later, he was cultivating 1 hectare of land. Right now, he is working on 2 hectares of cultivated land. He was able to achieve this phenomenal rate of growth thanks to his supportive family, who work in the fields along with him. Sergei is especially thankful to his wife, who works full time as a nursing aide at a hospital and still manages to help Sergei out in the field. Her salary alone is not enough to sustain the family.
Sergei's biggest dream is to send his kids, who are 8 and 12, to university. In order to achieve this, Sergei needs to cultivate more than 2 hectares of land. He has 11 hectares of land but he cannot utilize all of it because of the limited farm equipment he owns. His family needs you to help them finance motorized farming equipment, which will enable the family to realize their full potential by cultivating their entire 11 hectares of land. In the near future, Sergei is hoping to purchase a small tractor to expand the variety of his crop. Currently he is growing vegetables but, after he purchases a tractor, Sergei hopes to grow grapes as well.
About Agro Capital Management
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.
ACM uses a financing model that is relatively unique. Typically, a microfinance institution will lend money to farmers, who then purchase products they need to have a successful harvest and pay back the loan. In ACM's model, the organization purchases the agricultural goods before reselling them to small farmers on an affordable payment plan. This allows farmers to begin using the goods they buy without having to pay in full upfront.
As part of ACM's offering, clients receive training to improve crop yields. In order to cover its costs, the organization charges a small service fee. The amount of each Kiva loan includes both the cost of agricultural supplies and the service fee. As with all Kiva loans, repayments will be returned to lenders on the schedule outlined.